Breaking News

Tweet TWEET

Evercore Reports Record Full Year 2013 Results; Quarterly Dividend of $0.25 Per Share

  Evercore Reports Record Full Year 2013 Results; Quarterly Dividend of $0.25
  Per Share

Highlights

  *Full Year Financial Summary

       *Record U.S. GAAP Net Revenues of $765.4 million, up 19% compared to
         2012
       *Record U.S. GAAP Net Income from Continuing Operations of $74.8
         million, up 89% compared to 2012, or $1.42 per share, up 60% compared
         to 2012
       *Record Adjusted Pro Forma Net Revenues of $760.1 million, up 19%
         compared to 2012
       *Record Adjusted Pro Forma Net Income from Continuing Operations
         Attributable to Evercore Partners Inc. of $103.7 million, up 33%
         compared to 2012, or $2.25 per share, up 26% compared to 2012

  *Fourth Quarter Financial Summary

       *Record U.S. GAAP Net Revenues of $218.7 million, up 2% and 17%
         compared to Q4 2012 and Q3 2013, respectively
       *U.S. GAAP Net Income from Continuing Operations of $23.4 million,
         down 6% and up 17% compared to Q4 2012 and Q3 2013, respectively, or
         $0.42 per share, down 25% and up 8% compared to Q4 2012 and Q3 2013,
         respectively
       *Record Adjusted Pro Forma Net Revenues of $214.6 million, up 1% and
         15% compared to Q4 2012 and Q3 2013, respectively
       *Adjusted Pro Forma Net Income from Continuing Operations Attributable
         to Evercore Partners Inc. of $33.0 million, down 6% and up 36%
         compared to Q4 2012 and Q3 2013, respectively, or $0.71 per share,
         down 12% and up 34% compared to Q4 2012 and Q3 2013, respectively

  *Investment Banking

       *Record full year Net Revenues and Operating Income on an adjusted
         basis
       *Continue to advise on many of the leading transactions in the
         marketplace, including:

            *Advising E. I. du Pont de Nemours and Company on the spin-off of
              its Performance Chemicals business
            *Advising Forstmann Little & Co. on the sale of its ownership
              stake in IMG Worldwide Holdings, Inc.
            *Advising PVR Partners, L.P. on its sale to Regency Energy
              Partners LP

  *Investment Management

       *Record full year and fourth quarter Net Revenues and Operating Income
         on an adjusted basis
       *Assets Under Management in consolidated businesses were $13.6 billion

  *Promoted three Managing Directors, including two new Advisory Senior
    Managing Directors and one new Senior Managing Director leading our Mexico
    Private Equity team
  *Repurchased 2.5 million shares/units during the year, returning $128.2
    million of capital to shareholders, including dividends. Quarterly
    dividend of $0.25 per share

Business Wire

NEW YORK -- January 29, 2014

Evercore Partners Inc. (NYSE:EVR) today announced that its U.S. GAAP Net
Revenues were $765.4 million for the twelve months ended December 31, 2013,
compared to $642.4 million for the twelve months ended December 31, 2012. U.S.
GAAP Net Revenues were $218.7 million for the quarter ended December 31, 2013,
compared to $214.0 million and $187.3 million for the quarters ended December
31, 2012 and September 30, 2013, respectively. U.S. GAAP Net Income from
Continuing Operations was $74.8 million, or $1.42 per share, for the twelve
months ended December 31, 2013, compared to $39.5 million, or $0.89 per share,
for the same period last year. U.S. GAAP Net Income from Continuing Operations
for the fourth quarter was $23.4 million, or $0.42 per share, compared to
$25.0 million, or $0.56 per share, a year ago and $20.1 million, or $0.39 per
share, last quarter.

Adjusted Pro Forma Net Revenues were $760.1 million for the twelve months
ended December 31, 2013, compared with $638.8 million for the twelve months
ended December 31, 2012. Adjusted Pro Forma Net Revenues were $214.6 million
for the quarter ended December 31, 2013, compared with $212.1 million and
$186.5 million for the quarters ended December 31, 2012 and September 30,
2013, respectively. Adjusted Pro Forma Net Income from Continuing Operations
Attributable to Evercore Partners Inc. was $103.7 million, or $2.25 per share,
for the twelve months ended December 31, 2013, compared to $78.0 million, or
$1.78 per share, for the same period last year. Adjusted Pro Forma Net Income
from Continuing Operations Attributable to Evercore Partners Inc. was $33.0
million, or $0.71 per share, for the fourth quarter, compared to $35.3
million, or $0.81 per share, a year ago and $24.3 million, or $0.53 per share,
last quarter.

The U.S. GAAP trailing twelve-month compensation ratio of 63.5% compares to
67.0% for the same period in 2012 and 63.8% for the twelve months ended
September 30, 2013. The U.S. GAAP compensation ratio for the three months
ended December 31, 2013, December 31, 2012 and September 30, 2013 was 61.3%,
62.6% and 63.2%, respectively. The Adjusted Pro Forma compensation ratio for
the trailing twelve months was 59.2%, compared to 59.7% for the same period in
2012 and 58.9% for the twelve months ended September 30, 2013. The Adjusted
Pro Forma compensation ratio for the current quarter was 59.0%, compared to
58.0% and 59.2% for the quarters ended December 31, 2012 and September 30,
2013, respectively.

Evercore’s quarterly results may fluctuate significantly due to the timing and
amount of transaction fees earned, as well as other factors. Accordingly,
financial results in any particular quarter may not be representative of
future results over a longer period of time.

“2013 was another record year, our fifth consecutive year of significant
growth in net revenues and earnings. These results reflect the attractiveness
of our independent advisory model to clients globally, and the success of our
disciplined approach to investment in our business; adding clients, growing
market share and expanding the range of advisory capabilities that we provide
to our clients,” said Ralph Schlosstein, President and Chief Executive
Officer. “We had a record year in our advisory business and our early stage
businesses were profitable for the quarter and the full year, as the
Institutional Equities business continued to grow market share and the Wealth
Management business increased assets under management to $4.9 billion. Our
operating margins improved to 23.2%; we increased our dividend for the sixth
consecutive year and we repurchased sufficient shares to offset the dilutive
effect of bonus awards for the fourth consecutive year. Looking ahead, we hope
to build on this strong momentum and continue to gain market share in our key
businesses and geographies.”

“2013 was a strong year for Evercore as Investment Banking Net Revenues and
Operating Income grew by 18% and 22%, respectively, our third consecutive year
of growing Investment Banking Operating Income by more than 20% in what has
been a generally flat advisory market overall. Our growth reflects the
increasing diversity of Evercore’s advisory business, as fee paying clients
increased 10%, to 358, and our capabilities in M&A, Restructuring, Equity and
Debt Capital Markets and Private Funds Advisory continued to expand. These
results reflect the strength of our core advisory business, which gained share
in the M&A market for the third consecutive year. We also continued to grow
globally, earning 32% of our Investment Banking revenues from clients located
outside of the United States,” said Roger Altman, Executive Chairman. “We are
well positioned to sustain our positive momentum as we recruited five Advisory
Senior Managing Directors in 2013, expanding our capabilities in Latin America
and Singapore, and increasing our presence on the West Coast with a new office
in Silicon Valley. We began 2014 with 66 Advisory Senior Managing Directors
and have since promoted two of our talented Managing Directors, strengthening
our position in the energy and utilities industries.”

                                                                                                           
Consolidated U.S. GAAP and Adjusted Pro Forma Selected Financial Data (Unaudited)
                                                                                                                            
                 U.S. GAAP
                 Three Months Ended                              % Change vs.               Twelve Months Ended
                 December        September       December        September     December     December        December
                 31,             30,            31,             30,           31,          31,             31,             %
                                                                                                                            Change
                 2013            2013            2012            2013          2012         2013            2012
                 (dollars in thousands)
Net Revenues     $ 218,672       $ 187,328       $ 214,049       17    %       2    %       $ 765,428       $ 642,373       19  %
Operating        $ 43,876        $ 31,868        $ 42,238        38    %       4    %       $ 130,175       $ 65,535        99  %
Income
Net Income
from             $ 23,395        $ 20,080        $ 24,985        17    %       (6   %)      $ 74,812        $ 39,479        89  %
Continuing
Operations
Diluted
Earnings Per
Share from       $ 0.42          $ 0.39          $ 0.56          8     %       (25  %)      $ 1.42          $ 0.89          60  %
Continuing
Operations
Compensation       61.3    %       63.2    %       62.6    %                                  63.5    %       67.0    %
Ratio
Operating          20.1    %       17.0    %       19.7    %                                  17.0    %       10.2    %
Margin
                 
                 Adjusted Pro Forma
                 Three Months Ended                              % Change vs.               Twelve Months Ended
                 December        September       December        September     December     December        December
                 31,             30,            31,             30,          31,          31,             31,             %
                                                                                                                            Change
                 2013            2013            2012            2013          2012         2013            2012
                 (dollars in thousands)
Net Revenues     $ 214,559       $ 186,472       $ 212,070       15    %       1    %       $ 760,078       $ 638,822       19  %
Operating        $ 53,156        $ 42,475        $ 57,061        25    %       (7   %)      $ 176,571       $ 131,704       34  %
Income
Net Income
from
Continuing
Operations       $ 33,041        $ 24,331        $ 35,328        36    %       (6   %)      $ 103,650       $ 78,024        33  %
Attributable
to Evercore
Partners
Inc.
Diluted
Earnings Per
Share from       $ 0.71          $ 0.53          $ 0.81          34    %       (12  %)      $ 2.25          $ 1.78          26  %
Continuing
Operations
Compensation       59.0    %       59.2    %       58.0    %                                  59.2    %       59.7    %
Ratio
Operating          24.8    %       22.8    %       26.9    %                                  23.2    %       20.6    %
Margin
                                                                                                                            

The U.S. GAAP and Adjusted Pro Forma results present the continuing operations
of the Company, which exclude amounts related to Evercore Pan-Asset Capital
Management (“Pan”), whose operations were discontinued during the fourth
quarter of 2013. See page A-1 for the full financial results of the Company
including its discontinued operations.

Throughout the discussion of Evercore’s business segments, information is
presented on an Adjusted Pro Forma basis, which is an unaudited non-generally
accepted accounting principles (“non-GAAP”) measure. Adjusted Pro Forma
results begin with information prepared in accordance with accounting
principles generally accepted in the United States of America (“U.S. GAAP”),
and then those results are adjusted to exclude certain items and reflect the
conversion of vested and unvested Evercore LP Units into Class A shares.
Evercore believes that the disclosed Adjusted Pro Forma measures and any
adjustments thereto, when presented in conjunction with comparable U.S. GAAP
measures, are useful to investors to compare Evercore’s results across several
periods and facilitate an understanding of Evercore’s operating results.
Evercore uses these measures to evaluate its operating performance, as well as
the performance of individual employees. These measures should not be
considered a substitute for, or superior to, measures of financial performance
prepared in accordance with U.S. GAAP. For more information about the Adjusted
Pro Forma basis of reporting used by management to evaluate the performance of
Evercore and each line of business, including reconciliations of U.S. GAAP
results to an Adjusted Pro Forma basis, see pages A-2 through A-11 included in
Annex I. These Adjusted Pro Forma amounts are allocated to the Company’s two
business segments: Investment Banking and Investment Management.

Business Line Reporting

A discussion of Adjusted Pro Forma revenues and expenses is presented below
for the Investment Banking and Investment Management segments. Unless
otherwise stated, all of the financial measures presented in this discussion
are Adjusted Pro Forma measures. For a reconciliation of the Adjusted Pro
Forma segment data to U.S. GAAP results, see pages A-2 to A-11 in Annex I.

                  
Investment Banking
                     U.S. GAAP
                     Three Months Ended                            % Change vs.             Twelve Months Ended
                     December        September       December        September     December     December      December
                     31,           30,           31,             30,         31,          31,          31,           %
                                                                                                                              Change
                     2013            2013            2012            2013          2012         2013          2012
                     (dollars in thousands)
Net Revenues:
Investment           $ 187,994       $ 163,975       $ 195,467       15    %       (4   %)      $ 666,806     $ 568,238       17   %
Banking Revenues
Other Revenue,        4,945         (330    )      (612    )     NM            NM            3,979       (3,019  )     NM
net
Net Revenues          192,939       163,645       194,855      18    %       (1   %)       670,785     565,219      19   %
                                                                                                                              
Expenses:
Employee
Compensation and       121,055         104,139         120,593       16    %       —    %         430,514       378,350       14   %
Benefits
Non-compensation       32,941          29,760          30,073        11    %       10   %         120,147       116,272       3    %
Costs
Special Charges       -             -             -            NM            NM            -           662          NM
Total Expenses        153,996       133,899       150,666      15    %       2    %        550,661     495,284      11   %
                                                                                                                              
Operating Income     $ 38,943       $ 29,746       $ 44,189       31    %       (12  %)      $ 120,124    $ 69,935       72   %
                                                                                                                              
Compensation           62.7    %       63.6    %       61.9    %                                  64.2    %     66.9    %
Ratio
Operating Margin       20.2    %       18.2    %       22.7    %                                  17.9    %     12.4    %
                                                                                                                              
                                                                                                                              
                     Adjusted Pro Forma
                     Three Months Ended                              % Change vs.               Twelve Months Ended
                     December        September       December        September     December     December      December
                     31,            30,            31,             30,          31,         31,          31,             %
                                                                                                                              Change
                     2013            2013            2012            2013          2012         2013          2012
                     (dollars in thousands)
Net Revenues:
Investment           $ 184,828       $ 160,543       $ 191,140       15    %       (3   %)      $ 654,485     $ 554,745       18   %
Banking Revenues
Other Revenue,        526           768           473          (32   %)      11   %        2,841       1,293        120  %
net
Net Revenues          185,354       161,311       191,613      15    %       (3   %)       657,326     556,038      18   %
                                                                                                                              
Expenses:
Employee
Compensation and       114,053         96,712          110,201       18    %       3    %         396,774       331,823       20   %
Benefits
Non-compensation      27,329        26,328        24,563       4     %       11   %        104,920     96,936       8    %
Costs
Total Expenses        141,382       123,040       134,764      15    %       5    %        501,694     428,759      17   %
                                                                                                                              
Operating Income     $ 43,972       $ 38,271       $ 56,849       15    %       (23  %)      $ 155,632    $ 127,279      22   %
                                                                                                                              
Compensation           61.5    %       60.0    %       57.5    %                                  60.4    %     59.7    %
Ratio
Operating Margin       23.7    %       23.7    %       29.7    %                                  23.7    %     22.9    %
                                                                                                                              

For the fourth quarter, Evercore’s Investment Banking segment reported Net
Revenues of $185.4 million, which represents a decrease of 3% year-over-year
and an increase of 15% sequentially. Operating Income of $44.0 million
decreased 23% from the fourth quarter of last year and increased 15%
sequentially. Operating Margins were 23.7% in comparison to 29.7% for the
fourth quarter of last year and 23.7% for the third quarter of this year. For
the twelve months ended December 31, 2013, Investment Banking reported Net
Revenues of $657.3 million, an increase of 18% from last year. Year-to-date
Operating Income was $155.6 million compared to $127.3 million last year, an
increase of 22%. Year-to-date Operating Margins were 23.7%, compared to 22.9%
last year.

Revenues

During the quarter, Investment Banking earned advisory fees from 182 clients
(vs. 169 in Q4 2012 and 136 in Q3 2013) and fees in excess of $1 million from
51 transactions (vs. 48 in Q4 2012 and 31 in Q3 2013). For the twelve months
ended December 31, 2013, Investment Banking earned advisory fees from 358
clients (vs. 324 last year) and fees in excess of $1 million from 132
transactions (vs. 125 last year).

The Institutional Equities business contributed revenues of $12.5 million in
the quarter, up 46% in comparison to the third quarter, reflecting higher
levels of activity in both the primary and secondary markets during the
quarter, and up 76% from the fourth quarter of 2012. On a full year basis, the
Institutional Equities business reported revenues of $42.2 million.

Expenses

Compensation costs were $114.1 million for the fourth quarter, an increase of
3% year-over-year and 18% sequentially. The trailing twelve-month compensation
ratio was 60.4%, up from 59.7% a year ago and 59.2% in the previous quarter.
Evercore’s Investment Banking compensation ratio was 61.5% for the fourth
quarter, versus the compensation ratio reported for the three months ended
December 31, 2012 and September 30, 2013 of 57.5% and 60.0%, respectively.
Full year compensation costs were $396.8 million, an increase of 20% from the
prior year.

Non-compensation costs for the current quarter were $27.3 million, up 11% from
the same period last year and 4% sequentially. The increase in costs versus
the prior year reflects the addition of personnel within the business as well
as higher recruiting costs. The ratio of non-compensation costs to net revenue
for the current quarter was 14.7%, compared to 12.8% in the same quarter last
year and 16.3% in the previous quarter. Year-to-date non-compensation costs
were $104.9 million, up 8% from the prior year. The ratio of non-compensation
costs to revenue for the twelve months ended December 31, 2013 was 16.0%,
compared to 17.4% last year.

Expenses in the Institutional Equities business were $12.2 million for the
fourth quarter, an increase of 48% from the previous quarter. Expenses on a
full year basis were $40.9 million, reflecting the growth of the business.

                   
Investment Management
                       U.S. GAAP
                       Three Months Ended                          % Change vs.             Twelve Months Ended
                       December       September      December        September     December     December       December
                       31,          30,          31,             30,         31,          31,          31,           %
                                                                                                                               Change
                       2013           2013           2012            2013          2012         2013           2012
Net Revenues:          (dollars in thousands)
Investment
Management             $ 24,995       $ 24,238       $ 19,556        3     %       28   %       $ 95,759       $ 79,790        20  %
Revenues
Other Revenue,          738          (555   )      (362   )      NM            NM            (1,116 )      (2,636 )      58  %
net
Net Revenues            25,733       23,683       19,194       9     %       34   %        94,643       77,154       23  %
                                                                                                                               
Expenses:
Employee
Compensation and         13,025         14,189         13,441        (8    %)      (3   %)        55,280         52,065        6   %
Benefits
Non-compensation         7,605          7,372          7,704         3     %       (1   %)        29,142         29,489        (1  %)
Costs
Special Charges         170          -            -            NM            NM            170          -            NM
Total Expenses          20,800       21,561       21,145       (4    %)      (2   %)       84,592       81,554       4   %
                                                                                                                               
Operating Income       $ 4,933       $ 2,122       $ (1,951 )      132   %       NM           $ 10,051      $ (4,400 )      NM
(Loss)
                                                                                                                               
Compensation             50.6   %       59.9   %       70.0   %                                   58.4   %       67.5   %
Ratio
Operating Margin         19.2   %       9.0    %       (10.2  %)                                  10.6   %       (5.7   %)
                                                                                                                               

                  Adjusted Pro Forma
                   Three Months Ended                          % Change vs.             Twelve Months Ended
                   December        September      December       September     December     December        December
                   31,           30,          31,            30,         31,          31,           31,          %
                                                                                                                          Change
                   2013            2013           2012           2013          2012         2013            2012
Net Revenues:      (dollars in thousands)
Investment
Management         $ 28,916        $ 24,789       $ 19,903       17    %       45   %       $ 101,547       $ 81,777     24   %
Revenues
Other Revenue,      289           372          554         (22   %)      (48  %)       1,205         1,007      20   %
net
Net Revenues        29,205        25,161       20,457      16    %       43   %        102,752       82,784     24   %
                                                                                                                          
Expenses:
Employee
Compensation and     12,509          13,678         12,787       (9    %)      (2   %)        53,071          49,715      7    %
Benefits
Non-compensation    7,512         7,279        7,458       3     %       1    %        28,742        28,644     —    %
Costs
Total Expenses      20,021        20,957       20,245      (4    %)      (1   %)       81,813        78,359     4    %
                                                                                                                          
Operating Income   $ 9,184        $ 4,204       $ 212         118   %       NM           $ 20,939       $ 4,425      373  %
                                                                                                                          
Compensation         42.8   %        54.4   %       62.5   %                                  51.6    %       60.1   %
Ratio
Operating Margin     31.4   %        16.7   %       1.0    %                                  20.4    %       5.3    %
                                                                                                                          
Assets Under
Management (in     $ 13,633        $ 13,210       $ 12,075       3     %       13   %       $ 13,633        $ 12,075      13   %
millions) (1)

(1) Assets Under Management reflect end of period amounts from our
consolidated subsidiaries.


For the fourth quarter, Investment Management reported Net Revenues and
Operating Income of $29.2 million and $9.2 million, respectively. Investment
Management reported a fourth quarter Operating Margin of 31.4%. The high
growth in Revenues and Operating Income was supported by an increase in
performance fees and valuation increases for private equity investments.  For
the twelve months ended December 31, 2013, Investment Management reported Net
Revenues and Operating Income of $102.8 million and $20.9 million,
respectively. The year-to-date Operating Margin was 20.4%, compared to 5.3%
last year. As of December 31, 2013, Investment Management reported $13.6
billion of AUM, an increase of 3% from September 30, 2013.

On December 3, 2013, the Company sold all of its interest in Pan. Accordingly,
the historical results of Pan have been included within Discontinued
Operations.

Revenues

Investment Management Revenue Components                                                                         
                Adjusted Pro Forma
                  Three Months Ended                      % Change vs.             Twelve Months Ended
                  December     September     December       September     December     December      December
                  31,        30,         31,            30,         31,          31,         31,            %
                                                                                                                    Change
                  2013         2013          2012           2013          2012         2013          2012
Investment
Advisory and      (dollars in thousands)
Management
Fees
Wealth            $ 7,059      $  7,006      $ 5,123        1     %       38   %       $ 27,179      $ 19,823       37  %
Management
Institutional
Asset               11,671        10,689       11,053       9     %       6    %         43,899        47,393       (7  %)
Management
(1)
Private            2,347        2,351       2,397       —     %       (2   %)       10,622       7,798       36  %
Equity
Total
Investment
Advisory and       21,077       20,046      18,573      5     %       13   %        81,700       75,014      9   %
Management
Fees
                                                                                                                    
Realized and
Unrealized
Gains
(Losses)
Institutional
Asset               1,060         1,518        840          (30   %)      26   %         5,927         4,465        33  %
Management
Private            3,232        2,663       (21    )     21    %       NM            8,445        (206   )     NM
Equity (2)
Total
Realized and       4,292        4,181       819         3     %       424  %        14,372       4,259       237 %
Unrealized
Gains
                                                                                                                    
Equity in
Earnings of        3,547        562         511         531   %       594  %        5,475        2,504       119 %
Affiliates
(3)
Investment
Management        $ 28,916     $  24,789     $ 19,903      17    %       45   %       $ 101,547     $ 81,777      24  %
Revenues

(1) Management fees from Institutional Asset Management were $11.7 million,
$10.7 million and $11.2 million for the three months ended December 31, 2013,
September 30, 2013 and December 31, 2012, respectively, and $44.0 million and
$47.9 million for the twelve months ended December 31, 2013 and 2012,
respectively, on a U.S. GAAP basis, excluding the reduction of revenues for
client-related expenses.

(2) Realized and Unrealized Gains from Private Equity were $2.8 million and
$8.1 million for the three and twelve months ended December 31, 2013,
respectively, on a U.S. GAAP basis, including the write-off of General
Partnership investment balances during the fourth quarter of 2013 associated
with the acquisition of Protego.

(3) Equity in G5 | Evercore - Wealth Management and ABS on a U.S. GAAP basis
are reclassified from Investment Management Revenue to Income from Equity
Method Investments.


Investment Advisory and Management Fees of $21.1 million for the quarter ended
December 31, 2013 increased compared to the same period a year ago, driven
primarily by higher fees in Wealth Management and Institutional Asset
Management.

Realized and Unrealized Gains of $4.3 million in the quarter increased
relative to the prior year; the change relative to the prior period was driven
principally by Private Equity gains, including carry.

Equity in Earnings of Affiliates of $3.5 million in the quarter increased
relative to the prior year and the prior quarter principally as a result of
performance fees earned in the fourth quarter of 2013 by an affiliated
investment manager.

Expenses

Investment Management’s fourth quarter expenses were $20.0 million, down 1%
compared to the fourth quarter of 2012 and 4% compared to the previous
quarter, driven principally by lower levels of compensation. Year-to-date
Investment Management expenses were $81.8 million, up 4% from a year ago.

Other U.S. GAAP Expenses

Evercore’s Adjusted Pro Forma Net Income Attributable to Evercore Partners
Inc. for the three and twelve months ended December 31, 2013 was higher than
U.S. GAAP as a result of the exclusion of expenses associated with the vesting
of IPO equity awards and awards granted in conjunction with the Lexicon
acquisition, Special Charges, certain business acquisition-related charges and
the netting of changes in the Company’s Tax Receivable Agreement with Income
Tax Expense. In addition, for Adjusted Pro Forma purposes, client related
expenses and expenses associated with revenue-sharing engagements with third
parties have been presented as a reduction from Revenues and Non-compensation
costs. Further details of these expenses, as well as an explanation of similar
expenses for the three and twelve months ended December 31, 2012 and the three
months ended September 30, 2013, are included in Annex I, pages A-2 to A-11.

Non-controlling Interests

Non-controlling Interests in certain subsidiaries are owned by the principals
and strategic investors in these businesses. Evercore’s equity ownership
percentages in these businesses range from 51% to 72%. For the periods ended
December 31, 2013, September 30, 2013, and December 31, 2012 the gain (loss)
allocated to non-controlling interests was as follows:

             Net Gain (Loss) Allocated to Noncontrolling Interests
               Three Months Ended                      Twelve Months Ended
               December     September     December       December     December
               31,        30,         31,            31,        31,

               2013         2013          2012           2013         2012
Segment        (dollars in thousands)
Investment
Banking        $ (634 )     $   112       $ (668   )     $  62        $ (1,673 )
(1)
Investment
Management      (312 )        636        (478   )       1,148      418    
(1)
Total          $ (946 )     $   748       $ (1,146 )     $  1,210     $ (1,255 )

(1) The difference between the above Adjusted Pro Forma and U.S. GAAP
Noncontrolling Interests relates primarily to intangible amortization expense
for certain acquisitions, and allocations for discontinued operations, which
we excluded from the Adjusted Pro Forma results.


Income Taxes

For the three and twelve months ended December 31, 2013, Evercore’s Adjusted
Pro Forma effective tax rate was 37.2% and 37.8%, respectively, compared to
37.9% and 38.0% for the three and twelve months ended December 31, 2012,
respectively.

For the three and twelve months ended December 31, 2013, Evercore’s U.S. GAAP
effective tax rate was approximately 53.1% and 46.0%, respectively, compared
to 42.7% and 43.9% for the three and twelve months ended December 31, 2012,
respectively. The effective tax rate for U.S. GAAP purposes reflects
significant adjustments relating to the tax treatment of certain compensation
transactions, non-controlling interest associated with Evercore LP Units,
state, local and foreign taxes, and other adjustments.

Balance Sheet

The Company continues to maintain a strong balance sheet, holding cash, cash
equivalents and marketable securities of $341.9 million at December 31, 2013.
Current assets exceed current liabilities (which include $157.7 million of
accrued compensation and benefits, which will be paid to employees in early
2014) by $254.9 million at December 31, 2013. Amounts due related to the
Long-Term Notes Payable were $103.2 million at December 31, 2013.

Capital Transactions

On January 27, 2014, the Board of Directors of Evercore declared a quarterly
dividend of $0.25 per share to be paid on March 14, 2014 to common
stockholders of record on February 28, 2014.

During the three months ended December 31, 2013 the Company repurchased
approximately 51,000 shares at an average cost per share of $50.14.

Conference Call

Evercore will host a related conference call beginning at 8:00 a.m. Eastern
Time, Wednesday, January 29, 2014, accessible via telephone and the internet.
Investors and analysts may participate in the live conference call by dialing
(866) 825-3209 (toll-free domestic) or (617) 213-8061 (international);
passcode: 50133489. Please register at least 10 minutes before the conference
call begins. A replay of the call will be available for one week via telephone
starting approximately one hour after the call ends. The replay can be
accessed at (888) 286-8010 (toll-free domestic) or (617) 801-6888
(international); passcode: 32932388. A live webcast of the conference call
will be available on the Investor Relations section of Evercore’s website at
www.evercore.com. The webcast will be archived on Evercore’s website for 30
days after the call.

About Evercore

Evercore is a leading independent investment banking advisory firm. Evercore’s
Investment Banking business advises its clients on mergers, acquisitions,
divestitures, restructurings, financings, public offerings, private placements
and other strategic transactions and also provides institutional investors
with high quality equity research, sales and trading execution that is free of
the conflicts created by proprietary activities. Evercore’s Investment
Management business comprises wealth management, institutional asset
management and private equity investing. Evercore serves a diverse set of
clients around the world from 20 offices in North America, Europe, South
America and Asia. More information about Evercore can be found on the
Company’s website at www.evercore.com.

Basis of Alternative Financial Statement Presentation

Adjusted Pro Forma results are a non-GAAP measure. Evercore believes that the
disclosed Adjusted Pro Forma measures and any adjustments thereto, when
presented in conjunction with comparable U.S. GAAP measures, are useful to
investors to compare Evercore’s results across several periods and better
reflect management’s view of operating results. These measures should not be
considered a substitute for, or superior to, measures of financial performance
prepared in accordance with U.S. GAAP. A reconciliation of U.S. GAAP results
to Adjusted Pro Forma results is presented in the tables included in Annex I.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, which reflect our current views with respect to, among other
things, Evercore’s operations and financial performance. In some cases, you
can identify these forward-looking statements by the use of words such as
“outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,”
“estimates,” “anticipates” or the negative version of these words or other
comparable words. All statements other than statements of historical fact
included in this presentation are forward-looking statements and are based on
various underlying assumptions and expectations and are subject to known and
unknown risks, uncertainties and assumptions, and may include projections of
our future financial performance based on our growth strategies and
anticipated trends in Evercore’s business. Accordingly, there are or will be
important factors that could cause actual outcomes or results to differ
materially from those indicated in these statements. Evercore believes these
factors include, but are not limited to, those described under “Risk Factors”
discussed in Evercore’s Annual Report on Form 10-K for the year ended December
31, 2012, subsequent quarterly reports on Form 10-Q, current reports on Form
8-K and Registration Statements. These factors should not be construed as
exhaustive and should be read in conjunction with the other cautionary
statements that are included in this release. In addition, new risks and
uncertainties emerge from time to time, and it is not possible for Evercore to
predict all risks and uncertainties, nor can Evercore assess the impact of all
factors on our business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in
any forward-looking statements. Accordingly, you should not rely upon
forward-looking statements as a prediction of actual results and Evercore does
not assume any responsibility for the accuracy or completeness of any of these
forward-looking statements. Evercore undertakes no obligation to publicly
update or review any forward-looking statement, whether as a result of new
information, future developments or otherwise.

With respect to any securities offered by any private equity fund referenced
herein, such securities have not been and will not be registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration
requirements.

                                                                
ANNEX I
                                                                
Schedule                                                         Page Number
Unaudited Condensed Consolidated Statements of Operations for    A-1
the Three and Twelve Months Ended December 31, 2013 and 2012
Adjusted Pro Forma:                                              
Adjusted Pro Forma Results (Unaudited)                           A-2
U.S. GAAP Reconciliation to Adjusted Pro Forma (Unaudited)       A-4
U.S. GAAP Segment Reconciliation to Adjusted Pro Forma for the   A-6
Three and Twelve Months ended December 31, 2013 (Unaudited)
U.S. GAAP Segment Reconciliation to Adjusted Pro Forma for the   A-7
Three Months ended September 30, 2013 (Unaudited)
U.S. GAAP Segment Reconciliation to Adjusted Pro Forma for the   A-8
Three and Twelve Months ended December 31, 2012 (Unaudited)
Notes to Unaudited Condensed Consolidated Adjusted Pro Forma     A-9
Financial Data
                                                                   

                                                            
EVERCORE PARTNERS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2013 AND 2012
(dollars in thousands, except per share data)
(UNAUDITED)
                                                                     
                    Three Months Ended December      Twelve Months Ended
                    31,                              December 31,
                    2013               2012          2013            2012
                                                                     
Revenues
Investment          $  187,994         $ 195,467     $ 666,806       $ 568,238
Banking Revenue
Investment
Management             24,995            19,556        95,759          79,790
Revenue
Other Revenue         9,402           2,997        16,868        9,646
Total Revenues         222,391           218,020       779,433         657,674
Interest              3,719           3,971        14,005        15,301
Expense (1)
Net Revenues          218,672         214,049      765,428       642,373
                                                                     
Expenses
Employee
Compensation           134,080           134,034       485,794         430,415
and Benefits
Occupancy and
Equipment              9,214             8,400         34,708          34,673
Rental
Professional           9,397             9,426         36,450          35,506
Fees
Travel and
Related                8,686             7,290         31,937          28,473
Expenses
Communications
and Information        3,548             2,714         13,373          11,445
Services
Depreciation
and                    3,807             3,964         14,537          16,834
Amortization
Special Charges        170               -             170             662
Acquisition and
Transition             -                 692           58              840
Costs
Other Operating       5,894           5,291        18,226        17,990
Expenses
Total Expenses        174,796         171,811      635,253       576,838
                                                                     
Income Before
Income from
Equity Method          43,876            42,238        130,175         65,535
Investments and
Income Taxes
Income from
Equity Method         5,993           1,333        8,326         4,852
Investments
Income Before          49,869            43,571        138,501         70,387
Income Taxes
Provision for         26,474          18,586       63,689        30,908
Income Taxes
Net Income from
Continuing            23,395          24,985       74,812        39,479
Operations
                                                                     
Discontinued
Operations
Income (Loss)
from                   (24      )        -             (4,260  )       -
Discontinued
Operations
Provision
(Benefit) for         (8       )       -            (1,470  )      -
Income Taxes
Net Income
(Loss) from           (16      )       -            (2,790  )      -
Discontinued
Operations
                                                                     
Net Income             23,379            24,985        72,022          39,479
Net Income
Attributable to       6,474           5,963        18,760        10,590
Noncontrolling
Interest
Net Income
Attributable to     $  16,905         $ 19,022      $ 53,262       $ 28,889
Evercore
Partners Inc.
                                                                     
Net Income
(Loss)
Attributable to
Evercore
Partners Inc.
Common
Shareholders
From Continuing     $  16,909          $ 19,001      $ 54,799        $ 28,805
Operations
From
Discontinued          (9       )       -            (1,605  )      -
Operations
Net Income
Attributable to     $  16,900         $ 19,001      $ 53,194       $ 28,805
Evercore
Partners Inc.
                                                                     
Weighted
Average Shares
of Class A
Common Stock
Outstanding:
Basic                  33,130            29,905        32,208          29,275
Diluted                40,295            33,956        38,481          32,548
                                                                     
Basic Net
Income (Loss)
Per Share
Attributable to
Evercore
Partners Inc.
Common
Shareholders:
From Continuing     $  0.51            $ 0.64        $ 1.70          $ 0.98
Operations
From
Discontinued          -               -            (0.05   )      -
Operations
Net Income
Attributable to     $  0.51           $ 0.64        $ 1.65         $ 0.98
Evercore
Partners Inc.
                                                                     
Diluted Net
Income (Loss)
Per Share
Attributable to
Evercore
Partners Inc.
Common
Shareholders:
From Continuing     $  0.42            $ 0.56        $ 1.42          $ 0.89
Operations
From
Discontinued          -               -            (0.04   )      -
Operations
Net Income
Attributable to     $  0.42           $ 0.56        $ 1.38         $ 0.89
Evercore
Partners Inc.

(1) Includes interest expense on long-term debt and interest expense on
short-term repurchase agreements.

                                    A - 1

Adjusted Pro Forma Results

Throughout the discussion of Evercore’s business segments, information is
presented on an Adjusted Pro Forma basis, which is a non-generally accepted
accounting principles (“non-GAAP”) measure. Adjusted Pro Forma results begin
with information prepared in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”), adjusted to exclude
certain items and reflect the conversion of vested and unvested Evercore LP
Units, other IPO related restricted stock unit awards, as well as Acquisition
Related Share Issuances and Unvested Restricted Stock Units granted to Lexicon
employees, into Class A shares. Evercore believes that the disclosed Adjusted
Pro Forma measures and any adjustments thereto, when presented in conjunction
with comparable U.S. GAAP measures, are useful to investors to compare
Evercore’s results across several periods and facilitate an understanding of
Evercore’s operating results. The Company uses these measures to evaluate its
operating performance, as well as the performance of individual employees.
These measures should not be considered a substitute for, or superior to,
measures of financial performance prepared in accordance with U.S. GAAP. These
Adjusted Pro Forma amounts are allocated to the Company’s two business
segments: Investment Banking and Investment Management. The differences
between Adjusted Pro Forma and U.S. GAAP results are as follows:

1. Assumed Vesting of Evercore LP Units and Exchange into Class A Shares. The
Company incurred expenses, primarily, in Employee Compensation and Benefits,
resulting from the modification of Evercore LP Units, which will vest
generally over a five-year period. The Adjusted Pro Forma results assume these
LP Units have vested and have been exchanged for Class A shares. Accordingly,
any expense associated with these units and related awards is excluded from
Adjusted Pro Forma results and the noncontrolling interest related to these
units is converted to controlling interest. The Company’s Management believes
that it is useful to provide the per-share effect associated with the assumed
conversion of this previously granted but unvested equity, and thus the
Adjusted Pro Forma results reflect the vesting of all unvested Evercore LP
partnership units and IPO related restricted stock unit awards.

2. Adjustments Associated with Business Combinations. The following charges
resulting from business combinations have been excluded from Adjusted Pro
Forma results because the Company’s Management believes that operating
performance is more comparable across periods excluding the effects of these
acquisition-related charges;

a. Amortization of Intangible Assets. Amortization of intangible assets
related to the Protego acquisition, the Braveheart acquisition and the
acquisitions of SFS and Lexicon.

b. Compensation Charges. Expenses for deferred share-based and cash
consideration and retention awards associated with the acquisition of Lexicon,
as well as base salary adjustments for Lexicon employees for the period
preceding the acquisition.

c. Special Charges. Expenses primarily related to the write-off of intangible
assets during the fourth quarter of 2013 associated with the acquisition of
Morse Williams and the exiting the legacy office space in the UK in 2012.

d. GP Investments. Write-off of General Partnership investment balances during
the fourth quarter of 2013 associated with the acquisition of Protego.

3. Client Related Expenses. Client related expenses, expenses associated with
revenue sharing engagements with third parties and provisions for uncollected
receivables, have been classified as a reduction of revenue in the Adjusted
Pro Forma presentation. The Company’s Management believes that this adjustment
results in more meaningful key operating ratios, such as compensation to net
revenues and operating margin.

4. Income Taxes. Evercore is organized as a series of Limited Liability
Companies, Partnerships, a C-Corporation and a Public Corporation and
therefore, not all of the Company’s income is subject to corporate-level
taxes. As a result, adjustments have been made to the Adjusted Pro Forma
earnings to assume that the Company has adopted a conventional corporate tax
structure and is taxed as a C-Corporation in the U.S. at the prevailing
corporate rates, that all deferred tax assets relating to foreign operations
are fully realizable within the structure on a consolidated basis and that
adjustments for deferred tax assets related to the ultimate tax deductions for
equity-based compensation awards are made directly to stockholders’ equity.
This assumption is consistent with the assumption that all Evercore LP Units
are vested and exchanged into Class A shares, as discussed in Item 1 above, as
the assumed exchange would change the tax structure of the Company. In
addition, the Adjusted Pro Forma presentation reflects the netting of changes
in the Company’s Tax Receivable Agreement against Income Tax Expense.

                                    A - 2

5. Presentation of Interest Expense. The Adjusted Pro Forma results present
interest expense on short-term repurchase agreements, within the Investment
Management segment, in Other Revenues, net, as the Company’s Management
believes it is more meaningful to present the spread on net interest resulting
from the matched financial assets and liabilities. In addition, Adjusted Pro
Forma Investment Banking and Investment Management Operating Income is
presented before interest expense on long-term debt, which is included in
interest expense on a U.S. GAAP basis.

6. Presentation of Income from Equity Method Investments. The Adjusted Pro
Forma results present Income from Equity Method Investments within Revenue as
the Company’s Management believes it is a more meaningful presentation.

7. Presentation of Income (Loss) from Equity Method Investment in Pan. The
Adjusted Pro Forma results from continuing operations exclude the income
(loss) from our equity method investment in Pan. The Company’s Management
believes this to be a more meaningful presentation.

                                    A - 3


EVERCORE PARTNERS INC.
U.S. GAAP RECONCILIATION TO ADJUSTED PRO FORMA
(dollars in thousands)
(UNAUDITED)
                                                                        
                   Three Months Ended                              Twelve Months Ended
                   December        September       December        December        December
                   31,             30,             31,             31,             31,

                   2013            2013            2012            2013            2012
Net Revenues -     $ 218,672       $ 187,328       $ 214,049       $ 765,428       $ 642,373
U.S. GAAP (a)
Client Related       (5,623  )       (3,443  )       (5,354  )       (15,299 )       (16,268 )
Expenses (1)
Income from
Equity Method        5,993           562             1,333           8,326           4,852
Investments
(2)
Interest
Expense on           2,037           2,025           2,001           8,088           7,955
Long-term Debt
(3)
Equity Method
Investment in        -               -               41              55              (90     )
Pan (4)
General
Partnership          385             -               -               385             -
Investments
(5)
Adjustment to
Tax Receivable      (6,905  )      -             -             (6,905  )      -       
Agreement
Liability (10)
Net Revenues -
Adjusted Pro       $ 214,559      $ 186,472      $ 212,070      $ 760,078      $ 638,822 
Forma (a)
                                                                                   
Compensation
Expense - U.S.     $ 134,080       $ 118,328       $ 134,034       $ 485,794       $ 430,415
GAAP (a)
Amortization
of LP Units
and Certain          (4,820  )       (4,815  )       (5,682  )       (20,026 )       (20,714 )
Other Awards
(6)
Acquisition
Related             (2,698  )      (3,123  )      (5,364  )      (15,923 )      (28,163 )
Compensation
Charges (7)
Compensation
Expense -          $ 126,562      $ 110,390      $ 122,988      $ 449,845      $ 381,538 
Adjusted Pro
Forma (a)
                                                                                   
Operating
Income - U.S.      $ 43,876        $ 31,868        $ 42,238        $ 130,175       $ 65,535
GAAP (a)
Income from
Equity Method       5,993         562           1,333         8,326         4,852   
Investments
(2)
Pre-Tax Income
- U.S. GAAP          49,869          32,430          43,571          138,501         70,387
(a)
Equity Method
Investment in        -               -               41              55              (90     )
Pan (4)
General
Partnership          385             -               -               385             -
Investments
(5)
Amortization
of LP Units
and Certain          4,820           4,815           5,678           20,026          20,951
Other Awards
(6)
Acquisition
Related              2,698           3,123           5,364           15,923          28,163
Compensation
Charges (7)
Special              170             -               -               170             662
Charges (8)
Intangible
Asset                82              82              406             328             3,676
Amortization
(9a)
Adjustment to
Tax Receivable      (6,905  )      -             -             (6,905  )      -       
Agreement
Liability (10)
Pre-Tax Income
- Adjusted Pro       51,119          40,450          55,060          168,483         123,749
Forma (a)
Interest
Expense on          2,037         2,025         2,001         8,088         7,955   
Long-term Debt
(3)
Operating
Income -           $ 53,156       $ 42,475       $ 57,061       $ 176,571      $ 131,704 
Adjusted Pro
Forma (a)
                                                                                   
Provision for
Income Taxes -     $ 26,474        $ 12,350        $ 18,586        $ 63,689        $ 30,908
U.S. GAAP (a)
Income Taxes        (7,450  )      3,021         2,292         (66     )      16,072  
(10)
Provision for
Income Taxes -     $ 19,024       $ 15,371       $ 20,878       $ 63,623       $ 46,980  
Adjusted Pro
Forma (a)
                                                                                   
Net Income
from
Continuing         $ 23,395        $ 20,080        $ 24,985        $ 74,812        $ 39,479
Operations-
U.S. GAAP (a)
Net Income
Attributable
to                   (6,481  )       (5,063  )       (5,963  )       (19,945 )       (10,590 )
Noncontrolling
Interest (a)
Equity Method
Investment in        -               -               41              55              (90     )
Pan (4)
General
Partnership          385             -               -               385             -
Investments
(5)
Amortization
of LP Units
and Certain          4,820           4,815           5,678           20,026          20,951
Other Awards
(6)
Acquisition
Related              2,698           3,123           5,364           15,923          28,163
Compensation
Charges (7)
Special              170             -               -               170             662
Charges (8)
Intangible
Asset                82              82              406             328             3,676
Amortization
(9a)
Adjustment to
Tax Receivable
Agreement            545             (3,021  )       (2,292  )       (6,839  )       (16,072 )
Liability /
Income Taxes
(10)
Noncontrolling      7,427         4,315         7,109         18,735        11,845  
Interest (11)
Net Income
from
Continuing
Operations
Attributable       $ 33,041       $ 24,331       $ 35,328       $ 103,650      $ 78,024  
to Evercore
Partners Inc.
- Adjusted Pro
Forma (a)
                                                                                   
Diluted Shares
Outstanding -        40,295          38,409          33,956          38,481          32,548
U.S. GAAP
Vested
Partnership          4,569           5,561           5,978           5,489           7,113
Units (12a)
Unvested
Partnership          1,426           1,441           2,886           1,437           2,927
Units (12a)
Unvested
Restricted
Stock Units -        12              12              12              12              12
Event Based
(12a)
Acquisition
Related Share       384           444           892           533           1,174   
Issuance (12b)
Diluted Shares
Outstanding -       46,686        45,867        43,724        45,952        43,774  
Adjusted Pro
Forma
                                                                                   
Key Metrics:
(b)
Diluted
Earnings Per
Share from         $ 0.42          $ 0.39          $ 0.56          $ 1.42          $ 0.89
Continuing
Operations-
U.S. GAAP (c)
Diluted
Earnings Per
Share from
Continuing         $ 0.71          $ 0.53          $ 0.81          $ 2.25          $ 1.78
Operations-
Adjusted Pro
Forma (c)
                                                                                   
Compensation
Ratio - U.S.         61.3    %       63.2    %       62.6    %       63.5    %       67.0    %
GAAP
Compensation
Ratio -              59.0    %       59.2    %       58.0    %       59.2    %       59.7    %
Adjusted Pro
Forma
                                                                                   
Operating
Margin - U.S.        20.1    %       17.0    %       19.7    %       17.0    %       10.2    %
GAAP
Operating
Margin -             24.8    %       22.8    %       26.9    %       23.2    %       20.6    %
Adjusted Pro
Forma
                                                                                   
Effective Tax
Rate - U.S.          53.1    %       38.1    %       42.7    %       46.0    %       43.9    %
GAAP
Effective Tax
Rate -               37.2    %       38.0    %       37.9    %       37.8    %       38.0    %
Adjusted Pro
Forma

(a) Represents the Company's results from Continuing
Operations.
(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma
are a derivative of the reconciliations of their components above.
(c) For Earnings Per Share purposes, Net Income Attributable to Evercore
Partners Inc. is reduced by $5 of accretion for the three months ended
December 31, 2013 and $21 of accretion for the three months ended September
30, 2013 and December 31, 2012, and $68 and $84 of accretion for the twelve
months ended December 31, 2013 and 2012, respectively, related to the
Company's noncontrolling interest in Trilantic Capital Partners.


                                     A- 4

                                                             
EVERCORE PARTNERS INC.
U.S. GAAP RECONCILIATION TO ADJUSTED PRO FORMA
TRAILING TWELVE MONTHS
(dollars in thousands)
(UNAUDITED)
                             Consolidated
                               Twelve Months Ended
                               December 31,     September 30,     December 31,

                               2013             2013              2012
Net Revenues - U.S. GAAP       $  765,428       $  760,805        $  642,373
Client Related Expenses           (15,299 )        (15,030  )        (16,268 )
(1)
Income from Equity Method         8,326            3,666             4,852
Investments (2)
Interest Expense on               8,088            8,052             7,955
Long-term Debt (3)
Equity Method Investment          55               96                (90     )
in Pan (4)
General Partnership               385              -                 -
Investments (5)
Adjustment to Tax
Receivable Agreement             (6,905  )       -               -       
Liability (10)
Net Revenues - Adjusted        $  760,078      $  757,589       $  638,822 
Pro Forma
                                                                  
Compensation Expense -         $  485,794       $  485,748        $  430,415
U.S. GAAP
Amortization of LP Units
and Certain Other Awards          (20,026 )        (20,888  )        (20,714 )
(6)
Acquisition Related              (15,923 )       (18,589  )       (28,163 )
Compensation Charges (7)
Compensation Expense -         $  449,845      $  446,271       $  381,538 
Adjusted Pro Forma
                                                                  
Compensation Ratio - U.S.         63.5    %        63.8     %        67.0    %
GAAP (a)
Compensation Ratio -              59.2    %        58.9     %        59.7    %
Adjusted Pro Forma (a)
                                                                  
                               Investment Banking
                               Twelve Months Ended
                               December 31,     September 30,     December 31,
                                                                
                               2013             2013              2012
Net Revenues - U.S. GAAP       $  670,785       $  672,701        $  565,219
Client Related Expenses           (15,227 )        (14,805  )        (15,751 )
(1)
Income from Equity Method         2,906            1,323             2,258
Investments (2)
Interest Expense on               4,386            4,366             4,312
Long-term Debt (3)
Adjustment to Tax
Receivable Agreement             (5,524  )       -               -       
Liability (10)
Net Revenues - Adjusted        $  657,326      $  663,585       $  556,038 
Pro Forma
                                                                  
Compensation Expense -         $  430,514       $  430,052        $  378,350
U.S. GAAP
Amortization of LP Units
and Certain Other Awards          (17,817 )        (18,541  )        (18,364 )
(6)
Acquisition Related              (15,923 )       (18,589  )       (28,163 )
Compensation Charges (7)
Compensation Expense -         $  396,774      $  392,922       $  331,823 
Adjusted Pro Forma
                                                                  
Compensation Ratio - U.S.         64.2    %        63.9     %        66.9    %
GAAP (a)
Compensation Ratio -              60.4    %        59.2     %        59.7    %
Adjusted Pro Forma (a)
                                                                             

(a) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma
are a derivative of the reconciliations of their components above.


                                    A - 5

                                                                                                                 
EVERCORE PARTNERS INC.
U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED PRO FORMA
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2013
(dollars in thousands)
(UNAUDITED)
                  
                     Investment Banking Segment
                     Three Months Ended December 31, 2013                      Twelve Months Ended December 31, 2013
                                                               Non-GAAP                                                     Non-GAAP
                     U.S. GAAP       Adjustments               Adjusted        U.S. GAAP       Adjustments                  Adjusted
                     Basis                                     Pro Forma       Basis                                        Pro Forma
                                                               Basis                                                        Basis
Net Revenues:
Investment           $ 187,994       $ (3,166  ) (1)(2)        $ 184,828       $ 666,806       $ (12,321 ) (1)(2)           $ 654,485
Banking Revenue
Other Revenue,        4,945         (4,419  ) (3)(10)        526           3,979         (1,138  ) (3)(10)           2,841   
net
Net Revenues          192,939       (7,585  )                185,354       670,785       (13,459 )                   657,326 
                                                                                                                            
Expenses:
Employee
Compensation and       121,055         (7,002  ) (6)(7)          114,053         430,514         (33,740 ) (6)(7)             396,774
Benefits
Non-compensation      32,941        (5,612  ) (6)(9)         27,329        120,147       (15,227 ) (6)(9)            104,920 
Costs
Total Expenses        153,996       (12,614 )                141,382       550,661       (48,967 )                   501,694 
                                                                                                                            
Operating Income     $ 38,943       $ 5,029                  $ 43,972       $ 120,124      $ 35,508                    $ 155,632 
(a)
                                                                                                                            
Compensation           62.7    %                                 61.5    %       64.2    %                                    60.4    %
Ratio (b)
Operating Margin       20.2    %                                 23.7    %       17.9    %                                    23.7    %
(b)
                                                                                                                            
                                                                                                                            
                     Investment Management Segment
                     Three Months Ended December 31, 2013                     Twelve Months Ended December 31, 2013
                                                               Non-GAAP                                                     Non-GAAP
                     U.S. GAAP       Adjustments               Adjusted        U.S. GAAP       Adjustments                  Adjusted
                     Basis                                     Pro Forma       Basis                                        Pro Forma
                                                               Basis                                                        Basis
Net Revenues:
Investment
Management           $ 24,995        $ 3,921     (1)(2)(5)     $ 28,916        $ 95,759        $ 5,788     (1)(2)(4)(5)     $ 101,547
Revenue
Other Revenue,        738           (449    ) (3)(10)        289           (1,116  )      2,321    (3)(10)           1,205   
net
Net Revenues          25,733        3,472                   29,205        94,643        8,109                      102,752 
                                                                                                                            
Expenses:
Employee
Compensation and       13,025          (516    ) (6)             12,509          55,280          (2,209  ) (6)                53,071
Benefits
Non-compensation       7,605           (93     ) (9)             7,512           29,142          (400    ) (9)                28,742
Costs
Special Charges       170           (170    ) (8)            -             170           (170    ) (8)               -       
Total Expenses        20,800        (779    )                20,021        84,592        (2,779  )                   81,813  
                                                                                                                            
Operating Income     $ 4,933        $ 4,251                  $ 9,184        $ 10,051       $ 10,888                    $ 20,939  
(a)
                                                                                                                            
Compensation           50.6    %                                 42.8    %       58.4    %                                    51.6    %
Ratio (b)
Operating Margin       19.2    %                                 31.4    %       10.6    %                                    20.4    %
(b)
                                                                                                                            

(a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method
Investments.

(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma
are a derivative of the reconciliations of their components above.


                                    A - 6

                                                           
EVERCORE PARTNERS INC.
U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED PRO FORMA
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013
(dollars in thousands)
(UNAUDITED)
                   
                      Investment Banking Segment
                      Three Months Ended September 30, 2013
                      U.S. GAAP                                 Non-GAAP
                      Basis              Adjustments            Adjusted Pro
                                                                Forma Basis
Net Revenues:
Investment            $  163,975         $ (3,432  ) (1)(2)     $  160,543
Banking Revenue
Other Revenue,          (330     )       1,098    (3)          768      
net
Net Revenues            163,645         (2,334  )              161,311  
                                                                
Expenses:
Employee
Compensation and         104,139           (7,427  ) (6)(7)        96,712
Benefits
Non-compensation        29,760          (3,432  ) (6)(9)       26,328   
Costs
Total Expenses          133,899         (10,859 )              123,040  
                                                                
Operating Income      $  29,746         $ 8,525               $  38,271   
(a)
                                                                
Compensation             63.6     %                                60.0     %
Ratio (b)
Operating Margin         18.2     %                                23.7     %
(b)
                                                                
                      Investment Management Segment
                      Three Months Ended September 30, 2013
                      U.S. GAAP                                 Non-GAAP
                      Basis             Adjustments            Adjusted Pro
                                                                Forma Basis
Net Revenues:
Investment
Management            $  24,238          $ 551       (1)(2)     $  24,789
Revenue
Other Revenue,          (555     )       927      (3)          372      
net
Net Revenues            23,683          1,478                 25,161   
                                                                
Expenses:
Employee
Compensation and         14,189            (511    ) (6)           13,678
Benefits
Non-compensation        7,372           (93     ) (9)          7,279    
Costs
Total Expenses          21,561          (604    )              20,957   
                                                                
Operating Income      $  2,122          $ 2,082               $  4,204    
(a)
                                                                
Compensation             59.9     %                                54.4     %
Ratio (b)
Operating Margin         9.0      %                                16.7     %
(b)
                                                                

(a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method
Investments.
(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma
are a derivative of the reconciliations of their components above.


                                    A - 7


EVERCORE PARTNERS INC.
U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED PRO FORMA
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2012
(dollars in thousands)
(UNAUDITED)
                                                                                                                    
                     Investment Banking Segment
                     Three Months Ended December 31, 2012                              Twelve Months Ended December 31, 2012
                                                                       Non-GAAP                                                  Non-GAAP
                     U.S. GAAP       Adjustments                       Adjusted        U.S. GAAP       Adjustments               Adjusted
                     Basis                                             Pro Forma       Basis                                     Pro Forma
                                                                       Basis                                                     Basis
Net Revenues:
Investment           $ 195,467       $ (4,327  ) (1)(2)                $ 191,140       $ 568,238       $ (13,493 ) (1)(2)        $ 554,745
Banking Revenue
Other Revenue,        (612    )      1,085    (3)                    473           (3,019  )      4,312    (3)            1,293   
net
Net Revenues          194,855       (3,242  )                        191,613       565,219       (9,181  )                556,038 
                                                                                                                                 
Expenses:
Employee
Compensation and       120,593         (10,392 ) (6)(7)                  110,201         378,350         (46,527 ) (6)(7)          331,823
Benefits
Non-compensation       30,073          (5,510  ) (6)(9)                  24,563          116,272         (19,336 ) (6)(9)          96,936
Costs
Special Charges       -             -                               -             662           (662    ) (8)            -       
Total Expenses        150,666       (15,902 )                        134,764       495,284       (66,525 )                428,759 
                                                                                                                                 
Operating Income     $ 44,189       $ 12,660                         $ 56,849       $ 69,935       $ 57,344                 $ 127,279 
(a)
                                                                                                                                 
Compensation           61.9    %                                         57.5    %       66.9    %                                 59.7    %
Ratio (b)
Operating Margin       22.7    %                                         29.7    %       12.4    %                                 22.9    %
(b)
                                                                                                                                 
                     
                     Investment Management Segment
                     Three Months Ended December 31, 2012                              Twelve Months Ended December 31, 2012
                                                                       Non-GAAP                                                  Non-GAAP
                     U.S. GAAP       Adjustments                       Adjusted        U.S. GAAP       Adjustments               Adjusted
                     Basis                                             Pro Forma       Basis                                     Pro Forma
                                                                       Basis                                                     Basis
Net Revenues:
Investment
Management           $ 19,556        $ 347       (1)(2)(4)             $ 19,903        $ 79,790        $ 1,987     (1)(2)(4)     $ 81,777
Revenue
Other Revenue,        (362    )      916      (3)                    554           (2,636  )      3,643    (3)            1,007   
net
Net Revenues          19,194        1,263                           20,457        77,154        5,630                   82,784  
                                                                                                                                 
Expenses:
Employee
Compensation and       13,441          (654    ) (6)                     12,787          52,065          (2,350  ) (6)             49,715
Benefits
Non-compensation      7,704         (246    ) (9)                    7,458         29,489        (845    ) (9)            28,644  
Costs
Total Expenses        21,145        (900    )                        20,245        81,554        (3,195  )                78,359  
                                                                                                                                 
Operating Income     $ (1,951  )     $ 2,163                          $ 212          $ (4,400  )     $ 8,825                  $ 4,425   
(Loss) (a)
                                                                                                                                 
Compensation                                                 </t*Story
Ratio (b)              70.0    %                             too
                                                             large*

[TRUNCATED]
 
Press spacebar to pause and continue. Press esc to stop.